An annuity is a type of insurance service. In general terms, in an annuity contract, an insurance company and an annuitant contract for the annuitant to make one or more payments to the insurance company. For that consideration, the insurance company makes periodic payments to an annuitant. By way of example, the insurance company may be obliged to make a payment of a predetermined amount to the annuitant annually for a predetermined time period. In another example, the insurance company is obliged to make payments of a predetermined amount to the annuitant annually for the life of the annuitant.
An annuity contract in which the payments to the annuitant do not change over time results in a loss of purchase power over time, as a result of price inflation. In the prior art, an annuity product provides for an increase in the amount of payments associated with the Consumer Price Index for all urban consumers (CPI-U) compiled by the United States Department of Labor, an agency of the U.S. Federal government.